July 2, 2007 § Leave a comment
From this morning’s Herald Tribune. What is the source of this money? The process is mostly from shady deals in other countries seeking a safe haven.
London precipitated such thoughts daily. His disquiet is shared. The city has distilled globalization: The international elite is pricing British accountants, engineers and, yes, journalists out the multimillion-dollar housing market. More than half of homes over $6 million go to foreign residents with wealth matched only by their tax breaks.
As goes London, so, to some degree, go Moscow, Hong Kong, New York and Paris. Masters of the universe condemn mere professionals to being upper-losers. Income inequality grows. In the United States, the top 300,000 earners pocketed almost as much income as the bottom 150 million in 2005.
I asked Gary Becker, a Nobel Prize-winning economist, to explain what gives. Capital has gotten cheaper, he said, enabling those who use it to do so more lucratively. Capitalists’ talents are now deployable on a global scale, increasing their value. Technology favors those with skills to exploit it, raising the premium for the super-educated but failing to spread education much wider.